Volatility in cryptocurrencies continues, and the BTC price is around the $61,000 mark. Yesterday’s minutes were extremely positive. Now, Fed member Collins is making some important statements. Although unemployment data came in higher than the previous month, the BTC price saw some selling before the opening of the US stock markets. If demand does not increase at the market opening, a drop similar to previous ones may occur in a few hours.
Fed Statements and Crypto
Investors are tired of the price dropping at the end of every rise and now this needs to reverse. For now, BTC is around the $61,000 mark, but $61,400 is a safe zone. On the other hand, belief in interest rate cuts is strengthening. Collins now stated that the time for interest rate cuts has come.
We can summarize the important highlights of the ongoing statement as follows:
- The labor market is generally quite healthy, and we want to maintain this.
- Unemployment is still low, and unemployment claims indicate a regular rebalancing.
- The Fed is generally in a healthy position, and maintaining this is important.
- The employment market is healthy despite revisions.
- Inflation data is consistent with greater confidence that inflation will return to 2%.
- The time to start cutting interest rates has come.
- After shifting to a different policy stance, a gradual and methodical rate cut pace will be appropriate.
- We still see some ongoing resilience among consumers, although there are stress points.
- We do not see red flags in consumption data.
- Inflation and employment have reached a better balance.
